City alleges ‘breach of contract’ by former city manager

According to documents filed in York County Superior Court, the city of Biddeford is asking the Court to dismiss a complaint filed earlier this year by former city manager James Bennett.

In his lawsuit against the city, Bennett claims that he is entitled to more than $200,000 in wages and other compensation, as outlined in his employment contract with the city.

The city, however, is asking the Court to reject Bennett’s claim. The city said Bennett’s claim is not valid and further alleges that Bennett committed a breach of contract and a failure to comply with the contractual terms of his employment agreement.

In his brief to the Court, City Solicitor Harry B. Center argues that Bennett should not receive any further benefits, citing legal doctrine of “estoppel, laches, waiver and unclean hands,” which means the city is alleging that Bennett engaged in “misconduct or wrongdoing” related to his employment contract.

Bennett (center) toots his own horn explaining his resignation

Mayor Marty Grohman told the Biddeford Gazette Wednesday that he could not offer specifics about Bennett’s lawsuit or about why he was ousted from office in February, roughly two months prior to his announced resignation date of April 18.

“The city is committed to transparency but must also follow the applicable law in regard to employment and legal matters,” Grohman said. “We appreciate the public’s interest and will share more when we are able.”

The court documents obtained by the Gazette do not offer any specifics about why Bennett was removed from office or any details about his alleged “misconduct.”

Grohman said the city complied with all of its contractual obligations to the former city manager through the last date of his employment, April 18, 2025.

Because the issue is part of a pending legal matter and related to personnel issues, Grohman declined to answer why Bennett was abruptly removed from office on Feb. 20 of this year.

In his initial complaint to the Court filed on May 9, Bennett says he fulfilled all his contractual obligations to the city, thus arguing that he is entitled to several benefits that are spelled out in his employment contract.

Bennett claims that he is entitled to one full year of base compensation ($170,000). He also says that he is entitled to seven weeks of vacation pay ($22,848); 12 months-worth of reimbursements for his cell phone and internet ($4,200) and 12 months of mileage reimbursements ($8, 224).

As part of his employment contract, Bennett stipulates that the city is prohibited from publicly saying “anything negative” about him or his performance.

According to an addendum to Bennett’s employment contract:

“The city will limit references to James A. Bennett’s desire to retire, and the extended notice was in no way related to performance issues or any other issues.”

“Any public comments by the city and its agents and representatives will be limited to the positive contributions made by James A. Bennett and to the leadership he has provided to the city during his tenure.”

See below to view/download PDF of Bennett’s amended employment contract:

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Randy Seaver is the editor and founder of the Biddeford Gazette. He may be contacted by email: randy@randyseaver.com

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